10 Tips for Choosing a Condo to Rent Out

Although buying and selling real estate is one of the most popular investments, even in the face of inflation, due to its relatively high potential profit, every investment carries risk. This is especially true for new investors considering investing in real estate, particularly condominiums. Therefore, anyone thinking of buying a condo to rent out or investing in condos to get rich must know the correct and efficient investment methods. Here are 10 simple steps to getting rich with condos, as explained in this article by Araya Siripayak of Sansiri Public Company Limited. Let's start with:

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1. Plan your investment well to increase your chances of getting rich with condos.

No matter what investment you choose, even buying a condo to rent out carries risk. Therefore, you should plan and choose an investment that suits you best, considering both the investment timeframe and the amount of capital needed, to ensure efficient and profitable condo investments. There are many types of condo investments, such as short-term and long-term.

Investing in high-value assets like condos requires caution. If you acquired the property with borrowed money, it's crucial to plan your condo investment before acting. This includes setting clear goals, considering short-term or long-term investment timeframes, preparing your finances, and understanding investment methods. Investing in a condo correctly requires analyzing future possibilities to prevent investment mistakes.

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2. Study condo buying and selling information, understand the market, and the legal aspects.

The real estate market has many types, each with different market competition and demand. Condos, in particular, have detailed investment conditions and legal aspects. Before investing in real estate, it's beneficial to understand the laws, including contract regulations, ownership rights, and condo rental regulations. Therefore, the first recommendation is to continuously learn about the real estate market by reading buying and selling guides or real estate news.

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3. Set a budget and assess your capabilities – a simple step before investing in a condo.

Each investor has different levels of preparedness, so the return on investment will vary. The first thing to consider isn't the expected profit, but rather checking your own financial capacity and understanding how to calculate loan amounts. Currently, condo monthly payments vary... The investment value will be approximately 6,000 - 7,000 baht per 1 million baht of condo value. For those interested in investing in a 3 million baht condo, the minimum monthly payment should be around 18,000 - 21,000 baht, or a monthly salary of 40,000 - 50,000 baht or more.

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4. Choosing a Condo for Rent in the Right Location to Meet Your Target Group

Location is a key factor that can lead investors to wealth. A major advantage for renting out or reselling a condo is its proximity to the BTS Skytrain. Most condo projects developed for investors are located within 300-500 meters of a BTS station. Other amenities are considered secondary factors, such as shopping malls, hospitals, schools, and lifestyle facilities. Areas with BTS access tend to be increasingly equipped with these amenities.

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5. How to Choose a Condo That's Successful, Easy to Sell, and Has Plenty of Tenants

Location is not the only factor contributing to a successful condo investment; the new condo project itself is equally important. From unit location and usable area to common areas, project orientation, and the surrounding environment, all factors affect the buying, selling, and renting rates of condominiums. Nowadays, the developer's reputation is also a key factor in choosing a condo investment.

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6. Choosing the Right Time to Buy and Invest in a Condo

New projects often have presales, which are considered the best time to invest because the prices are lower than other periods. Those who miss the presales will have another opportunity in the resales, where prices will be even lower. Experienced condo investors will learn about more in-depth sales rounds, such as VIP rounds, which offer even better prices and the chance to choose unit locations first. This is a very advantageous buying opportunity, and investors can also resell their reservations for further profit.

Ideally, look for condos under 2 million baht in locations near the BTS/MRT, shopping malls, universities, offices, etc.

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7. Find Low-Interest Loans to Reduce Condo Costs and Increase Future Profits

Many investors looking for long-term investments still need to borrow or take out housing loans from financial institutions. Therefore, choosing this investment method requires knowing how to select the loan with the lowest interest rate to reduce the burden of condo investment. There are several ways to do this. This might involve applying for loans from 2-3 institutions to compare interest rates, or choosing projects participating in promotions with financial institutions to get lower condo loan interest rates. Also, knowing how to refinance every 3 years is important.

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8. Know How to Set Selling and Rental Prices for Condos: Calculate Carefully for High Profits

A good foundation for investors is knowing how to calculate costs and future profit rates. Therefore, it's crucial for new investors to know how to compare prices per square meter of condos to determine rental prices by surveying the market and competitors. They can also calculate maintenance fees, utility costs, and interest on mortgages to determine a profit margin, ensuring a rental income that doesn't result in a loss, and allowing for a profitable sale price.

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9. Know Profitable Selling Channels and How to Rent Out Quickly

Not only can you set a profitable selling or rental price for your condo, but a good investor must also know the right sales channels and how to make their condo easy to rent out at a good price. In the past, it might have been just about putting up signs and waiting for a sale, but today the internet helps. Whether you list it yourself or use an agent, renting has become easier. However, you must carefully calculate all the expenses. Furthermore, decorating and maintaining the condo in good condition can also increase its value.

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10. Knowing how to reinvest your investments makes getting rich easy.

No matter how much profit you make, you must know how to reinvest it. You might not need to invest immediately due to existing investments, but you can use the profits to improve your personal accounts. This provides a foundation for future investment. Besides money, it's also about building good relationships with the project developer, the seller, and fellow investors. These elements will help you quickly become a professional investor.

As mentioned above, investing in condos for rent carries risks. Therefore, the 10 steps outlined above are fundamental to reducing investment risk. Following them, or investing in a condo systematically, will significantly improve your chances of success. Rest assured that in addition to reducing investment risk, it will also help increase profits significantly, even in the face of inflation.

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Thank you for the valuable information from Thansettakij.